Products & Brands Flashcards
Words combinations with products
- Launch: the introduction of a product to the market.
- Lifecycle: the length of time people continue to buy a product.
- Range: the set of products made by a company.
- Placement: when products are used in films (PPL)
- Endorsement: the use of a celebrity to advertise products.
Definition of Brand, Product, Brand strategies, Brand value
Brand:
- gives a product an identity and enables the target consumer to decide if they want the product or not.
Product:
- anything that can be offered to a market incl. people and service.
Brand strategies:
- Corporate branding (include their name in all their products); Individual branding (give each product its own brand. eg. P&G-> Pampers, Pringles); Multi-branding (same product type with different brand from same company, to avoid sales for competition and occupy space in shelves)
Brand value:
- Comes from customer loyalty and can its worth can be much greater than company’ physical assets.
Successful brand strategies
- Have a clear identity
- Focus on the audience
- Always be consistent
- Keep your promises
- Select a perfect color
Why do product mixes regurlarly change?
Consumer needs, market change and the life cycle of products are differents.
What makes a product great?
- It should be easy to use
- solve a problem or fulfill a need.
- be functional, helpful and make your life easier and make things better.
What is marketing?
- The activity of understanding the market conditions to identify the customer needs and create a product that it sells itself.
- 4Ps, Long term
- Focus on creating a market for the new or existing product & building brand image.
4 Ps of marketing mix
- Product: what to sell
- Price: what prices to charge.
- Place: how product will be distributed and where people will buy it.
- Promotion: how product will be advertised.
Product life cycle
- Research and development stage: before it is launched in the market.
- Introduction stage: launching the product into the market.
- Growth stage: sales are increasing at their fastest rate.
- Maturity stage: sales are near their highest, but the rate of growth is slowing down.
- Decline stage: final stage of the cycle, when sales begin to fall.
Types of marketing
- Ambush marketing: a company takes advantage oof the presence of the media at an event in order to effectively advertise for free.
- Guerrilla marketing: strategy to promote products on the street or other public places with little money.
- Viral marketing: companies turn users of the internet into unpaid advertisers of their products.
Sales driven & Market driven
According to McKenna:
- Sales-driven companies try to change customers’ minds and persuade them to like the products they produced.
- Market-driven companies work with customers to
understand their strategies, and adapt their products to them.
What is advertising?
- Advertising is a part of the market communication process with the aim of informing consumers about the product and persuading them to buy them.
- Promotion, short-term
- Focus on catching the attention of the general/ specific public.
Three methods of determinating advertising spending
- Spending a fixed percentage of current sales revenue.
- Spending as much as competitors.
- Increasing current spending to increase sales.
Disadvantages of traditional advertising
It is expensive, it does not always reach the target customers, and it is not always welcome as it interrupts people
Andy Warhol prediction
In 1968 the artist Andy Warhol predicted “In the future, everybody will be world-famous for 15 minutes”
Video-sharing sites have allowed this prediction to come closer to reality.
How videos go viral?
- Tastemakers: Influential people enjoying the video and reposting it.
- Unexpectedness: Video has to be different.
- Communities of Participation: Others want to be part of this.
